March 03 (LBO) – HDFC bank is planning to offer housing mortgages based on Islamic finance principles, an official said. “We have already formulated to bring the Sharia concept into the housing loan portfolio,” says HDFC Bank chairman S M M Yaseen told ETV’s Money Report programme.
“I am very keen and my board has given me the ok to go forward with this product. I hope that this product will really help the market and the customer will also have a different product.”
He says the bank has already consulted Islamic finance experts from Malaysia and is also looking for certification from local religious authorities.
As part of broadening its product offering HDFC has already announced that is will offer lifestyle loans to customers to spruce up their houses.
HDFC bank has already moved into the apartment building process with its subsidiary firm, HDFC Real Estate.
Three apartment complexes including one in Wellawatte and one at Edmonton Road are set to begin construction soon.
The bank is raising 500 million rupees through a debenture and is also looking to raise another billion rupees through a